As I observed the Wave structure, there was an anomaly. The bounce to 2171.36 had the form of an a-b-c. Either it was the beginning of an Ending Diagonal or part of another formation that I had missed.

As it turned out, I started drawing trendlines and a Wave 4 Triangle emerged that I had not observed before.

The Elliott Wave Rule (Wave 3 cannot be the smallest) still applies. However, with the Triangle now in evidence, The measure of Wave 5 starts at 2156.08 instead of 2151.17. This gives us a new top limit for Wave 5 of 2213.03.

The new high at 2210.08 falls within that rule. I expect the SPX to grind away near the highs. Keep in mind that beneath 2200.00 the uptrend may be finished.

The VIX is off its lows, but no signal, yet. The Hi-Lo is off its highs, but also no signal. Today is only a half-day with little or no volume, so I don’t expect to see any big moves. However, the initial decline on Monday may be unmistakable.

Regards,

Tony

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